Lester opened a savings account and deposited 5,881.00 as principal. The account earns 6% interest, compounded annually. What is the balance after 6 years?

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Solution

Lester opened a savings account and deposited 5, 881.00 as principal. The account earns 6% interest, compounded annually. What is the balance after 6 years?

Solution

Amount : 8342.31

Solution steps

Translate the problem into an equation:

A = 5881 (1 + \frac{0.06}{1})^{1 \cdot 6}

5881 (1 + \frac{0.06}{1})^{1 \cdot 6} = 8342.31089 \dots

Round to the nearest hundredth:

8342.31

Amount : 8342.31

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